Home International News Canadian retailer Gildan acquires American Apparel for $88 million

Canadian retailer Gildan acquires American Apparel for $88 million

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Canadian apparel maker Activewear Inc won a bankruptcy auction to acquire ailing fashion retailer for $88 million in cash.

Canadian retailer Gildan acquires American Apparel for  million
If manufacturing shifts to Canada, American Apparel's made in USA heritage could be trouble, reports Reuters

Gildan said on Tuesday it will buy manufacturing equipment and intellectual property rights related to American Apparel, but the Canadian company did not assume the leases of the retailer’s California manufacturing plants.

The new company is yet to decide where to make the clothing once the integration process is completed. If manufacturing shifts to Canada, American Apparel’s made in USA heritage could be trouble, reports Reuters

MUST READ: How fashion retailer American Apparel went bankrupt

Gildan was facing competition from .com, Forever 21, Next Level Apparel, and Juicy Couture owner of Authentic Brands Group, but outbid them all.

The deal will be finalized towards the end of January. However, the acquisition doesn’t include the brand’s 110 remaining stores  and American Apparel will need to find a separate buyer to take them over if they are to remain open.